Thousands still waiting for student loans

Almost three months since they began their studies, thousands of students are still waiting for loans from the Student Loans Company (SLC).

Worried: Becky Leeman still hasn't received her money

More than 100,000 students were left without cash when they began the term in September because their loans had not come through.

The delays, which began in the summer, were due to widespread processing problems.

SLC lost paperwork and failed to put students' data into its systems. Many universities have had to offer hardship funds to help the most cashstrapped students.

About 60,000 loans have yet to be paid although SLC says the majority of these are where applicants have not supplied all the relevant information.

The figures also include courses that have yet to start and students who may have been accepted for a loan but then decided not to go to university.

Becky Leeman, 18, from Norwich, contacted Financial Mail to say she still has not received her loan, even though she applied four months ago.

Despite contacting SLC regularly for updates on her application, Becky says there have been several problems, including SLC losing her birth certificate.

'Luckily my mum had a second birth certificate from the registrar so I have posted it again, by recorded delivery this time,' says Becky.

'But I have been told it will take about another 30 days to process this information. It's very frustrating.

'I've had to borrow off my mum to help towards my living costs and at this rate I still won't have the money when I start university again after Christmas.'

Becky says that Hull University, where she is studying for a degree in law, has been understanding. But her tuition fees are now three months late.

'I'm not sure how much longer the university will allow me to delay,' says Becky. 'I'm starting to get worried. The SLC doesn't seem to be able to tell me exactly when I will get

the money in my account.'

A report commissioned by the Government into the delays at SLC was published earlier this month and found 'conspicuous failures'.

The report prompted management change at the company and a review of the application process. Applications for funding for next year were postponed while the problems were rectified.

SLC says it has sorted out its processing issues and that applications for funding for 2010-11 should be smooth.

A spokeswoman says any student still waiting for their money for 2009-10 should contact SLC on 0845 300 50 90 quoting their reference number as extra information may be required to process the application.